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Published on 19.07.2023

Barratt Developments has released its 2023 fiscal year report

Despite a serious rise in mortgage rates, the UK real estate market remains active. According to the report of one of the UK’s largest developers, Barratt Developments PLC, during the first quarter of 2023, the number of orders increased by 6.9%, and as a result, it was able to increase the volume of completed housing. In total, the company has 17,206 properties for sale in the 2023 financial year.

In its annual report, the company outlined its achievements for the 2023 financial year. Barratt Developments stated that from May to the end of June 2023, the company experienced a decline in demand for housing. This was due to a sharp rise in mortgage rates in the UK and an increase in the size of monthly payments. In the third quarter, Barratt was able to bring demand closer to seasonal patterns.
The number of homes built in FY 2023 decreased by only 3.9% to 17,206 compared to 17,908 in FY 2022. The percentage of affordable housing compared to total housing increased to 23.9% compared to 22.3% in FY 2022.

The total average selling price (ASP) for the year was £320,000. This was up 9.4% on last year.

For private clients, the ARP increased from £368,000 to £167,000. For general clients, this also increased from £159,000 to £167,000.

Barratt Developments PLC also talked about the company's earnings. The developer expects to deliver adjusted earnings in line with market expectations. The company has more than £1bn remaining on its balance sheet at the end of the 2023 financial year, including spending on share and land buybacks, which allows it to plan its budget for next year. Compared to FY 2022, the current budget is down slightly by £100m.

The company has 8,995 homes planned for the 2024 financial year, with an estimated total value of £2.2bn.
The company also reported on the awards it received for their work. In June 2023, Barratt Developments PLC received 96 awards in the Pride in the Job Awards for excellence in construction management. This is the 19th consecutive year the developer has received it, and is more than any other company in the construction industry.

Barratt Developments PLC is also investing in the environment. As part of the Energy House 2.0 project, the company has launched the eHome2 programme, which involves building zero-carbon homes. In the future, this will reduce the cost of building homes and therefore their final cost.
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Amit Seth
Managing Director